McClatchy Washington Bureau

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Former Gov. Sarah Palin is settling an ethics complaint by agreeing to return more than $386,000 collected in a legal defense fund before she resigned last summer.

The settlement, between Palin and the Alaska Personnel Board, was signed Monday and announced this afternoon.

An investigator for the board, Timothy Petumenos, said today that the fund was illegal because it inappropriately used the word "official" on its website, wrongly implying Palin's endorsement as governor.

Palin's attorney says she will return the funds.

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